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L^NION PACIFIC RAILROAD
MARCH --;, 1871
PRINT1';]) 1;\- 1;.\M1 A\'!.:i<\', \- FRVK, i C01';NHI1.1,,
UNION PACIFIC RAILROAD
MARCH 8, 1871.
PRINTED ]iy RAM), AVERV, & FRYE, 3 CORNHILL. 1871.
UNION PACIFIC RAILROAD
MARCH 8, 1871.
PRINTED PY RAND> A VERY, & FRYE, 3 CORNHILL.
ec ^nion pacific ^ailroatt to^in]?.
Boston, Mass,, March 8, 1871.
STOCKHOLDERS OF THE UNION PACIFIC E. E.
DURING the past year, notwithstanding the great depression of business in California,
the net earnings have been sufficient to meet the interest upon our entire bonded
debt; and it is confidently expected that the ensuing year will show much better
results. We have very much improved our road during the past year, by smoothing
and perfecting the road-bed, strengthening our snow-sheds where they showed signs
of weakness last winter, increasing the amount of our snow-fences; and so effectually
has our road been protected during the past winter from obstruction by snow,
that we have in DO instance missed our connection at either end of our line ;
while the roads east, through Iowa, have been detained over twenty-four hours.
The great danger anticipated from the snows of the Platte Yalley and Lar-ramie
Plains, has proved groundless; and the "Union Pacific Railroad can be run
with more certainty of being unobstructed by snows than the railroads of New
England and New York.
Our repair-shops at Bryan and Wahsatch have been a
source of great anxiety to us on account of the temporary nature of their construction,
their great liability to fire, and
the difficulty of removing our locomotives, should a fire occur We decided last;
fall to remove from these shops, and put up new stone shops at Evanston, of sufficient
capacity to accommodate the machinery and store the engines now sheltered at
both of these shops. We commenced the construction of our shops at Evanston,
but not early enough to complete them before the winter set in with such severity
as to force us to postpone their completion till spring. They will be ready for
occupation early in May. They are finely located on Bear River, with an abundance
of pure water, and in the immediate vicinity of one of the most extensive
coal-fields on this continent. The want of a bridge over the Missouri River,
to connect the eastern railroads with the Union Pacific, has been one of the
most annoying incidents connected with the trip to California. The uncertain
and turbulent character of the river, with its shifting banks, has made its passage
uncertain, and frequently extremely tedious. During the past year, we have been
actively at work upon the bridge. and hope to have as permanent and durable a
structure as can be made, ready for use the ensuing summer.
Mr. T. E. Sickels, the chief engineer of the Company, submits a report in detail,
upon the construction and present condition of the Missouri-river bridge, from
which I extract the following facts: —
The bridge is of 11 spans, of 250 feet each, 50 feet above high water, resting
upon one stone abutment now completed ; and 11 iron piers, all in place, and
part of them already sunk from 60 to 72 feet in the sand, and resting in the
All piers will be completed by the time the superstructure is ready to be placed
The pneumatic system, used in sinking the piers, is
specially applicable to the construction of foundations for bridges across rivers
similar to the Missouri. Lignite, bones, &c., have been found to a depth
of 50 feet below low water, showing a scouring of at least that depth; and the
bed-rock, when reached, sliows invariab^ a smooth surface, worn by attrition
of sand upon it. The shortest time in which any column was sunk was seven days
; and the greatest depth any column has reached in twenty-four hours was 18^
The west approach to the bridge is 7,000 feet long. The material for it is very
rapidly moved, and it will be completed by April 1.
The east approach is 1-^ miles long, rising from the tableland in Council Bluffs
to the bridge grade at 35 feet per mile. This. approach requires 468,000 cubic
yards of earth; "and there has been put in by steam-shovels and three trains
of cars during the past winter 82,700 cubic
With energetic prosecution of the work, Mr. Sickels is of opinion the bridge
can be completed this year.
The bridge is being constructed for highway-travel on the same level with the
track of the railway. The revenue arising from this travel and the transportation
by cars, taking as a basis the present transfer of cars, freight, and passengers,
between the roads terminating in Council Bluffs, Iowa, and the Union Pacific,
and the foot^travel between Council Bluffs and Omaha, Mr. Sickels finds to be
for the year 1870, at the rates charged, ^176,430. In view of the rapid growth
of Council Bluffs and Omaha. which now have a population of 29,000, the large
immigration induced by the cheap lands along the line of the road, the development
of the Utah silver-mines, and of the agricultural and mineral lands generally,
adjacent to the road, with the assured great increase in the trade in Texas cattle,
the estimate for 1871 may be set down to be $275,000.
An Act has been obtained from, Congress, authorizing a
f the bridge We propose, now, to issue two
;Sehmidred ^usand (^00 000) dollars of twenty ^n vears 8 percent mortgage bonds,
to provide means orrcorapletion of the bridge. The tolls on the bridge
will be fixed at a rate sufficient to pay the interest on the bonds and set apart
enough to a sinking fund to redeem them at maturity. It is proposed to make the
bridge a carriage-way for the accommodation of travel between the cities of Omaha
and Council Bluffs, and from which it is expected to derive an income largely
in excess of the additional cost, and without interference with its use for railroad
The increased facilities opened by the railroad for reaching the mining districts
have greatly stimulated the development of the mines. Colorado and Utah are now
opening some of the richest mines yet discovered in our country. The mines in
the vicinity of Salt Lake are exciting great attention. It is estimated that
from ten to fifteen thousand settlers and miners will be drawn there the ensuing
season. The amount of ores to be sent over our road to smelting works east and
in England is estimated to be from 500 to 1,000 tons daily; while the machinery
necessary to develop successfully and profitably the mines will give a very large
westward business to our road. Our prospects of business from Salt Lake City
and its vicinity
are very encouraging; and I shall be greatly disappointed it it shall not be
more than double what it was last year.
^ur coal-mines have proved fully equal to our most sanguine expectations, both
in regard to the superior quality
Do1;? ^ aa .a 6ie^ genel'ator and ^ extent of the de-coTiL , ^ eved that there
ia "o better coal in this
^ S^ r106'and none wbere u ^
and in vast o7^ + Ir011 ore) of ve1^ ^P^101' ^tyt of Chevennq Dtltles' as been
^covered in the vicinity
district here t^^nr16!-, we have promise of an iron " wlli be ^le to compete
the most favored localities of our country.. Extensive iron works must spring
up on tlie line of our road, and we shall be furnished with cheap iron for all
its uses. Coal and iron, the most necessary and essential materials for the construction
and operation of a railroad, are found on the line of our road in unlimited quantities,
and of the finest quality. They are the sure guaranties that our road can be
maintained and operated at the lowest rates.
The sale of our lands and the settlement of the country on the line of our road
have been very satisfactory; and a large increase of our business must be derived
from this source. Our land agent, Mr. Davis, anticipates a very large influx
of settlers the coming season, whose purchases must greatly reduce our indebtedness
on Land Grant Tionda. One of the most promising sources for the increase of the
business of our road is stock-raising on the PIatte Yalley and Larramie Plains.
Parties who have been in this business for the past two years have realized very
satisfactory profits ; and the rapid increase of the flocks and herds indicates
that we may soon expect to transport hundreds of car-loads of beef and cattle
daily to Chicago and eastern markets. These .immense plains, covered with the
most nutritious grasses, which have been in past ages the pasture of countless
herds of buffalo that have been driven off by advancing civilization, are now
open for the flocks and herds of the enterprising settler. The pasturage is unlimited,
and the extent of the business is only limited by the capacity of eastern markets
Cattle that were purchased last summer for $13 each, and have cost but $1 since-for
their care, are now being sold for $24 each. It does not cost over from ^5 to
$8 to raise a steer up to three years old, that will weigh from eight to ten
hundred pounds. These plains cannot be settled up for many years; and they offer
to capital one of the most flatter-ing openings for safe and profitable investments.
Q' na the opening of our road, we have been seeking Since the^ ^^^ ^^ of the
teas and silks of China
^TTn Ar^^^^^^^^^^^ been recently made that w0!?! ^ think. secure a large portion
of this business overland- and we expect during the coming season a very large
increase of our receipts from this source.
A business that has run for a long period in one channel is changed from its
course with great difficulty. We shall find from year to year new business and
new sources of income. The Montana business from the east, previous to last year,
went almost entirely up the Missouri River by steamboats.' Last year, a portion
of it went over our road.
-This year, I think it will almost entirely go over our road, leaving it at Evanston,
Ogden, and Coriune, for Montana,
on wagons. The great mutations which have taken place in our
securities the few months past perhaps demand some explanation.
After we had saved the Government millions upon millions on the cost of its transportation
over the plains and to the Pacific; after we had done away with the necessity
of keeping a cordon of soldiers for eighteen hundred miles, to secure the safety
of emigration and of trans-continental trade; after we had opened the vast interior
to settlement seven years earlier than required of us by our charter,
the action of some of the departments of the Government became so hostile to
us as to shake the credit of the corporation. The Treasury Department first refused
to receive United-States Pacific Railroad Bonds as a basis for banking, and thus
lessened their mercantile value; next selected and set apart these bonds in its
tons of the public debt, as if not a portion of the debt of the United States,
but of our road exclusively ; thus apparently indicating its irresponsibility,
and thereby again lessening their value, then polished monthly, not only the
indebtedness, with the interest, but the deficit of interest, SIR if dne
by us, and left unpaid; and then, worst of all, and hardest of all, withheld
from us all our earnings in the transportation of letters, newspapers, packages,
and of the array and navy, all of wliicli hitherto we hail been paid one-half
of, as under Act of Congress. Tlie Treasury Department was fortified in tlie
last act of injustice by an opinion of the Attorney General. These repeated blows
against this the great work of the age, so unexpectedly directed, shook our credit
for a time ; for it was soon seen and felt that no corporation could withstand
such attacks, and hence those wide and wild variations in tlie market-value of
our securities. The Judiciary Committee of the United-States Senate (every member
except one) offset their legal opinion, that the interest was not due, against
tlie opinion of the Attorney General, that it was all due ; and every other committee
in both Houses of Congress before whom the question was brought agreed with the
Judiciary Committee of the Senate. Both Houses of Congress finally reversed the
action of the Treasury Department and of the Attorney General (the House of Representatives
without a division), and the result is the restoration of the credit of the company,
with a great advance in all its securities.
President Union Pacific Sailroad Company.
UNION PACIFIC RAILROAD CO.
GENERAL SUPERINTENDENT'S OFFICE
OMAHA, NEB», March 1, 1871,
OLIVER AMES, ESQ,, President U- P- K- R. Co,
Dear Sir,— I submit herewith a statement of the operations of the Transportation
Department, for the year ending Dec> 31, 1870,
Earnings. Expenses. Net Eai-nings.
February 500,139 42 449,838 67 50,300 75
March 539,238 09 442,900 61 96,337 48
April May June July
802,586 09 743,261 83 643,058 44 664,050 83 728,520 93 719,697 80 570,168 31
206,6.17 65 3-22.945 48
254,708 06 314,720 90 442,362 77 373.093 52 297,438 27 211,283 11
$7,625,277 11 ^4,677,414 84 ' S'2,947.862 27,v . , ,
Expenses, 61 S-1-100
per cent of earning
CLASSIFICATION OF EARNINGS.
1870, Freight- Mail. Express. MisceHaneone
January., February. March-,,.
AuguBtn..,, »i September, i > Octobern-t..
November.-. -December, . •«
$165,396 56 209,643 65
397,566 50 421,999 90 396,072 31 336,298 02
357,150 64 360,160 56
359,108 99 306,107 19
$281,560 70 222,584 31 213,808 93 223,666 50 324,385 62 294,321 86 249,825 35
246,427 35 306,050 40 292,132 10 198,793 81 204,957 69
$22,129 17 22,129 17 21,940 23 22,129 17 22,129 17 22.129 17 22,129 15
22,129 19 22,129 16
28,705 41 25,180 00 23,654 59
$23,819 69 23,277 61 23,972 64 17,463 23 16,874 17 18,998 49 23,657 72 23,881
15 28,107 29 27,874 07 25,369 74
$35,623 10 22,504 68 6,874 82 20,147 86 17,197 23 11,740 02 11,148 20 14,456
50 12,073 52 13,877 14
14,717 S7 11,568 89
$3,818,627 55 $3,058,514 71 $274,513 58 $281,691 76 $191,929 53
Government transportation is included in the above columns of Passengers and
Table showing number of Way and Through Passengers carried, and the number carried
one mile, during each monlft of the year 1870.
Way Passengers -
Way Pilssen-grrs carried one mile.
Thro ii^h Passeneers.
one mile. -
Total Passengers carried one mile.
1,676.797 1,129,773 1,448,557
1,305,722 5S9,016 •261,919
2,467 2,80-2 4,571 6,209 7 392 6 263 5,445 5,133 5.303 5,741 5,145 3,811
2,547,944 2,891,664 4,717.272 6,407.688 7,628,544 6,463,416 5,619,240 5,297,256
5.472,696 5.:) 24.712 5.309,640 3,932,952
8.565 11,721 15580 15.738 13.834 12,945 13.162 12.516 11 5^0 10,560
4,224,741 4.021,437 6,165,829 7,150,996 8,591,772 8,015,227 6.406,490 6,326,565
6,778,418 6.513,728 5,571,559 5,150,573
February. ..................... 5,763
March-. ....................... 7,150
May .................... ..... 8346
July .......................... 7,500
August. ....................... 8,029
November ...................... 5,415
Totals. ................... 82,341
Showing number of tons of Local and Through Freights; also number of low carried
Number of tons of Freight carried one mile.
Tlirongh Local. Total,
January 878,778 2,572,960 3,451,738
February 888,406 1,444,006 2,332,412
1,564,150 1,555,480 1,615,666 1,234,500 1,666,431
2,539,475 2,843,438 2,602,379 1,915,121
20,108,812 51,670,294 71,779,106
Skovsina number of tons of Government FreigJit carried one mile during 1870.
January............. ••••••••"•-•••••••••• 290,623
February. .........••••.••••••••-•••••••••• 61,809
March..................................... 181,659 "
April...................................... 514,611 "
May....................................... 414,732 "
June..............>....................... 273,780 "
July. ..................................... 255,905 "
August....... ................. ........... 660,217 "
September,................................ 325,850 "
October................................... 560,953 "
November.................................. 696,954 "
December.................................. 285,938 lt
Showing the number of Cars of all kinds belonging to the Union Pacific Railroad
First Class Passenger Cars
Second " Baggage Cars Mail
Express Officers' l( ^LiDCohl""
19 21 11
Pav (t J. cLy > • • • •
Emigrant " ..... Caboose " ..... Wrecking Cabooses
Dump " ... -Fast Freight Cars Stock Cars......
Powder Cars (iron) -Box " .......
Flat " .......
52 108 48 12 2 '1,032 1,165
All of the above cars are in good order, except fourteen of the second class,
which need repairs that will cost, in the aggregate, 816,500; and also about
three hundred and fifty of the flat cars that were used in the construction of
the road, and have been idle since then. In addition to the above, there are
thirty-one Pullman cars, all but three of which are in good order.
NUMBER OF LOCOMOTIVES, DESCRIPTION, AND HOW EMPLOYED.
What employed for.
Danforth & Co-
Hinkley & Williams.
Rogers-Danfbrth & Co>
Hinkley & Williams
i ^ (&
Hinkley & WiUlams
Switching. Unemployed. Passenger-Eep airing.
Unemployed Snow-Plow> Unemployed. Snow-Plow,
Freight Passenger-Unemployed. Freight.
Passenger, Pay Car, Passenger.
^ (Weak flues»)
! Defective crows and Good- [fire-box.
Fair. (Crack in crown"
Good. Fair. ^Thin tires.)
^.S3 Manufiipturo What em- „ ^o. ^anuMctuie. ^^ ^ Condition.
42 Taunfron. ; Frri^ht. Good.
43 • Grant. , " n
Repairing-Snow-Plow- ; Good-
Moore & Sous
N orris, Moore & Sons-
Beinjj: repaired. Engine-truck and lifting-Unemployed- Fair. [shaft, broken.
Switching- (t (Weak flues.)
Hinkley & Williams>
DaGfbrtli & Co>
Water train >
LOCOMOTIVES — Continuedi
What employed for,
4£ hC it
Unemployed. Freight-Pusher. Freight.
Snow-Plow-, Passenger. Freight-Freight-
Extra Freight, Passenger*
Repairs • Freight,
Unemployed. Passenger, Freight, Pusher,
Fair. (Defective crown-Good- [sheet.)
Fair, except cylinder. Fair.
Fair. (Weak flues.) Good.
1 tt &1 (f u
What employed tbr-
Hinkley & Williams.
li except tender,
C(Total number, 145.
What employed for.
Danforth & Co-Grant-Rogers. Grant. Sehenectady-
Total number of Ponies, 5- Total number of Locomotive^ 150,
During the year 1870, trains were run with great regularity. From Oct. 1, 1870,
to M.ircli 1, 1871, which embraces that portion of the year when it was popularly
supposed that snow-blockades would occur on this ro;id, all passenger-trains
going west made regular connL-ctions with trains on the Central Pacific R'lilroad;
and all eastward-bound passenger-trains, with a single exception only, connected
regularly with trains going east and soutli from Omaha. Snow-storms on the mouiitiiin
division ot the road have been very numerous during tlie past winter; but ample
protection to the track was afforded by tlie snow-sheds and snow-fences. It is
believed that no railroad in thia country, on or near the same parallel of latitude,
is less liable than is the Union Pacific Railrudd to obstruction by
Only one accident occurred during tlie past year. that
caused death to a passenger. This was occasioned by tlie breaking of tIie flange
of a car-wheel, which resulted in tlie death of two passengers, and slight bruises
to fuur others.
BUSINESS OF THE ROAD FOR 1871.
The prospects for a large increase over the business of 1870 are extremely favorable.
The development already made of the Utah silver mines, the great extent of country
covered by them, and the richness of tlie ores, afford evidence that a large
amount of passenger and freight business incident thereto will pass over the
entire length of tlie road during the coming season. Last year, there were ten
thousand two hundred and forty (10,240) tons of ore transported from Odgen to
Oinaha; and, for the months of January and February, there have been two thousand
five hundred and seventy (2,570) tons transported; which latter were the product
of one region only.
The transportation of machinery for smelting works, of which large quiiuLitiea
are nuw being madu iu Chicago and
elsewhere, and of supplies generally for that region, will constitute a very
pronraltle sourco of revenue, \vhii:h together with the freight on OI-BS and
bullion going eastward cannot fail to add largely to receipts of road.
It is estimated by well-intormed persons now in Utah that one thousand (1,000)
tons, at least, of ore and base bullion will pass over tlie road daily during
the mining-season of this ye;u'. Tlie production of ores will be further stimulated
by tlie extension, during tlie coining summer, of
the Utah Central Railroad to Payson, seventy-five miles south of Salt Lake City.
The local trade of the road is increasing quite as rapidly as could have been
anticipated. From the extended efforts that have been made by the Land Commissioner
to direct attention to the large quantity of valuable agricultural lands near
the line of tlie road, it is known that an extensive emigration from Europe and
the Eastern States will be made this year to lands adjacent to the road in Platte "Valley.
TEXAS CATTLE TRADE.
Last year, there were twenty-seven thousand (27,000) Texas cattle driven to the
line of the railroad from Texas.
The parties engaged in this business were so successful, that they have increased
their operations, and now give assurances that not less than seventy-five thousand
(75,000) head will be driven to the railroad and sent to Omaha dur. iog the coming
season, to'be transported to Chicago and
the eastern cities.
Arrangements recently made with steamship lines are a guaranty that there will
be a large increase in overland passenger and freight basioeBS this year. Estimates
bean made of the proh^bte ftrmmnt of basinets tliat will be
^ -f ^^T- T'»^ ^"^ ... • J|.
(low ^y (Ite n>a*l fittriog l)»e ye^ir lS7t, w!iich ware b^^d au the
rao^t relia^iy (littii«t>t;tiitab!o. Frura these f^t!.ta;it.^«,
thy totiil itiee4>t?i of the road, it is n^auioed, will araoUiil to
ten miltiona of dollars (110,000,000). The exp&aaog oftranaportation,in view
of the expenenc®
already ftUaiRed in (ipeniti»g tli© r<^i^, can be stitte<I with
an approximatictn iti accurHCy, ;iti(l will not be toond to ex-eeeti ntty per
cettt uf rocyipErt ; ieaving » bahince of Hve Batinons of dolhirij ($5,000,000)
aa t!>e net profits of the year's busin^s. Very respectfully,
TV Qff^WI Q
. £*. Siiv. rLl'-Uc?.
' Oh^/JSfi^r and Sup^t.
STATEMENT OF THE BONDS AND STOCK OF THE UNION PACIFIC RAILROAD COMPANY MARCH
First Mortgage Bonds. ................... ^27,237,000
Land Grant Bonds .......... $10,400,000
Less Bonds cancelled......... §06 000
- 9,594,000 Income Bonds .......................... 10,000,000
. , _ —————— ©46,831,000
United-States for 6% Cy. Bonds ....................... 27 236 512
Capital Stock issued ................................. 3^74^000
aTATEMENT OF THE LAND DEPARTMENT TO JAN. l, 1871. -
Bonds issued, §10,400,600; interest 7 per cent Currency.
Land sales, 292,900 acres; proceeds, ®1,306,566; average price per acre, ®4.46.
On account of these sales, the Company has received and redeemed land-grant bonds
to the extent of............... §736,000
For the remainder, the Company holds land-notes maturing in
one, two, and three years with accruing interest ......... 576,650
Total. ..................................... .... tr;812,650 ^
' -IL- /^'"
The condition of the laud department may, therefore, be stated thus: — •.^
Bonds ...............................'....... •••••- ©10,400,000
Principal reduced by bonds redeemed .•»-<.»» ©736,000
'" Land Xotes on hand- ,mm m ,,-,.---— 576,650
Showing an absolute reduction............... •. $1,312,650
TIie Company is entitled under the grants from Government, after deducting total
lands pre-empted before
f n, n . ......... 12,080,000 acres.
passage or the act .....••.••••••••••••••••• '
From which deduct tlie amount heretofore sold ....... 292'S83 acres* * .
-i Bn+ ...... 11,787,117 acres,
Leaving on hand as an asset ..........•••• ' ._-,..
which, at an average value of two dollars per acre belnptwent„pe^ cent
below the minimum Government price for adJOiomg lands owned
hy it, should yield the gross sum of $23,574.284, so mucl^-^-^^^^,
be required to be applied to the payment on '•e<1^^1^^ . bonds; and
the bilance to go into the Treasury. The average ^
amount to about %75,000 per month. " |
' : ^
, .._y cold with considerable snow, but there has SDOW- SiTdela? of either passenger
or freight trains on that
account. The equipment of the Road consists of-
168 Locomotives, EiiuipmeDt. ^ passenger and Baggage Cars,
3,060 Freight Cars. It is all in good condition, and was never better than it
at present. .11
The Boiling Mill at La.ramie has been in operation
MnllDe during the last year, and has re-rolled 10,914 tons of rails, at the contract
price of 818.50 per ton. The contract with Mr. Boyal M. Bassett having been terminated
by agreement, the operating of the mill will hereafter be controlled by the Company.
Recent improvements for rolling rails have been made, others are proposed to
be put in, which, when done, will materially reduce the cost and greatly improve
the quality of the rails for the Road.
Mininff The mining business of Colorado, "Wyoming, Utah,
n 11 fl 111 AQ B
Montana, and Nevada, which is tributary to the road, was never looking more promising
than at the present time, and the production of silver and copper ores and bullion
is constantly increasing.
The Black Hills mining district is also attracting much attention, and is likely
to surpass in richness and extent any similar development yet discovered, California
not excepted. The present year bids fair to add a very large increase to the
population of tills rich mining region.
Coal. The coa1 mines of the Company have produced satisfactory results during
the past year. Tlie business is increasing and the sales to tlie public are nmcli
The production of the mines for the years 1875 and 1876 was as follows:
Ton3- Cost of Mining. Cost por Ton.
187o, 208,222 $:iyi,8S5 10 $1 88 1S76, L'04,771 375,520 50 1 W
Increase, 50,545 Decrease.....................^10,251 41 .46